Plastics Plus Limited - Limited company accounts 20.1

REGISTERED NUMBER: 02558644 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31st December 2021

for

PLASTICS PLUS LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Income Statement

9

Other Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

15

DIRECTORS:

S P W White

T John

B White

R R White

SECRETARY:

S P W White

REGISTERED OFFICE:

Unit 9 Stafford Road

Wolverhampton

WV10 6HH

REGISTERED NUMBER:

02558644 (England and Wales)

AUDITORS:

M.T.Manley & Co Limited (Statutory Auditor)

696 Yardley Wood Road

Billesley

Birmingham

West Midlands

B13 0HY

The directors present their strategic report for the year ended 31st December 2021.

REVIEW OF BUSINESS

The accounts disclose a pretax profit of £392,027(2020 £835,616) and total assets of £2,341,373 (2020 £2,028,821,).

The 2021 figures reflect the return to almost normal trading compared with 2020.

The positive affect of the COVID pandemic in 2020 was the increase in demand for plastic sheet products at higher margins than usually expected.

In 2021 there was a drop in demand and with shortage of raw materials and a slow return to work for some clients this resulted in the lower turnover and a tightening of margins.

There has been no detrimental affect on employment and cash flow has remained good despite the challenges faced.

PRINCIPAL RISKS AND UNCERTAINTIES

The company is subject to market and competitive risks. The markets the company operates within are quite resilient even in a general economic downturn. However the company is always aware that it needs to provide excellent service and competitive pricing to maintain and increase its market share.

The business is dependent upon the skills and performance of its employees and the effectiveness of all employees is subject to careful management.

DEVELOPMENT AND PERFORMANCE

The company's strategic plan is under constant review with the aim of increasing market share at increasing operating margins.

Analysis using Key Performance Indicators

Gross Profit £2,397,833 (2020 £3,013,117)

EBITDA £630,461 (2020 £1,092,048)

(Earning before interest,taxation,depreciation and exceptional items)

ON BEHALF OF THE BOARD:

S P W White - Director

8th March 2022

The directors present their report with the financial statements of the company for the year ended 31st December 2021.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of stockholders of polycarbonate,extruded and cast acrylic sheeting.

DIVIDENDS

Dividends were paid amounting to £6,000 in the year.The directors do not recommend payment of a final dividend.

DIRECTORS

The directors shown below have held office during the whole of the period from 1st January 2021 to the date of this report.

S P W White

T John

B White

R R White

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, M.T.Manley & Co Limited (Statutory Auditor), will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

S P W White - Director

8th March 2022

Opinion

We have audited the financial statements of Plastics Plus Limited (the 'company') for the year ended 31st December 2021 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31st December 2021 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures inline with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We design our procedures so as to obtain sufficient appropriate audit evidence that the financial statements are not materially misstated due to non-compliance with laws and regulations or due to fraud or error.

We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations - this responsibility lies with management with the oversight of the Directors.

Based on our understanding of the company and industry and discussions with management we identified financial reporting standards and Companies Act 2006 as having a direct effect on the amounts and disclosures in the financial statements.

As part of the engagement team discussion about how and where the company's financial statements may be materially misstated due to fraud, we did not identify any areas with an increased risk of fraud.

Our audit procedures included:

o enquiry of management about the company's policies, procedures and related controls regarding compliance with laws and regulations and if there are any known instances of non-compliance;

o examining supporting documents for all material balances, transactions and disclosures;

o review of the Board of directors minutes;

o enquiry of management and review and inspection of relevant correspondence with any legal firms;

o evaluation of the selection and application of accounting policies related to subjective measurements and complex transactions;

o analytical procedures to identify any unusual or unexpected relationships;

o testing the appropriateness of journal entries recorded in the general ledger and other adjustments made in the preparation of the financial statements;

o review of accounting estimates for biases;

Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements of the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).

The potential effects of inherent limitations are particularly significant in the case of misstatement resulting from fraud because fraud may involve sophisticated and carefully organized schemes designed to conceal it, including deliberate failure to record transactions, collusion or intentional misrepresentations being made to us

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Graham Collins (Senior Statutory Auditor)

for and on behalf of M.T.Manley & Co Limited (Statutory Auditor)

696 Yardley Wood Road

Billesley

Birmingham

West Midlands

B13 0HY

8th March 2022

TURNOVER

12,430,392

15,066,012

Cost of sales

10,032,559

12,052,895

GROSS PROFIT

2,397,833

3,013,117

Administrative expenses

1,993,971

2,161,618

OPERATING PROFIT

4

403,862

851,499

Interest receivable and similar income

252

706

404,114

852,205

Interest payable and similar expenses

5

12,087

16,589

PROFIT BEFORE TAXATION

392,027

835,616

Tax on profit

6

73,475

161,005

PROFIT FOR THE FINANCIAL YEAR

318,552

674,611

PROFIT FOR THE YEAR

318,552

674,611

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

318,552

674,611

FIXED ASSETS

Tangible assets

8

527,602

635,967

CURRENT ASSETS

Stocks

9

1,301,597

1,064,368

Debtors

10

2,097,504

2,029,441

Cash at bank and in hand

2,880,037

2,827,761

6,279,138

5,921,570

CREDITORS

Amounts falling due within one year

11

4,290,755

4,190,753

NET CURRENT ASSETS

1,988,383

1,730,817

TOTAL ASSETS LESS CURRENT LIABILITIES

2,515,985

2,366,784

CREDITORS

Amounts falling due after more than one year

12

(116,317

)

(270,125

)

PROVISIONS FOR LIABILITIES

14

(58,295

)

(67,838

)

NET ASSETS

2,341,373

2,028,821

CAPITAL AND RESERVES

Called up share capital

15

100,000

100,000

Retained earnings

16

2,241,373

1,928,821

SHAREHOLDERS' FUNDS

2,341,373

2,028,821

The financial statements were approved by the Board of Directors and authorised for issue on 8th March 2022 and were signed on its behalf by:

S P W White - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st January 2020

100,000

1,260,210

1,360,210

Changes in equity

Dividends

-

(6,000

)

(6,000

)

Total comprehensive income

-

674,611

674,611

Balance at 31st December 2020

100,000

1,928,821

2,028,821

Changes in equity

Dividends

-

(6,000

)

(6,000

)

Total comprehensive income

-

318,552

318,552

Balance at 31st December 2021

100,000

2,241,373

2,341,373

Cash flows from operating activities

Cash generated from operations

1

212,650

2,452,705

Interest element of hire purchase payments paid

(12,087

)

(16,589

)

Tax paid

(103,434

)

(5,477

)

Net cash from operating activities

97,129

2,430,639

Cash flows from investing activities

Purchase of tangible fixed assets

(137,806

)

(629,241

)

Sale of tangible fixed assets

35,500

126,198

Interest received

252

706

Net cash from investing activities

(102,054

)

(502,337

)

Cash flows from financing activities

Capital repayments in year

(66,449

)

58,351

Amount introduced/withdrawn by directors

129,650

(4,168

)

Equity dividends paid

(6,000

)

(6,000

)

Net cash from financing activities

57,201

48,183

Increase in cash and cash equivalents

52,276

1,976,485

Cash and cash equivalents at beginning of year

2

2,827,761

851,276

Cash and cash equivalents at end of year

2

2,880,037

2,827,761

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2021

2020

£

£

Profit before taxation

392,027

835,616

Depreciation charges

226,349

239,843

Profit on disposal of fixed assets

(15,677

)

(28,255

)

Finance costs

12,087

16,589

Finance income

(252

)

(706

)

614,534

1,063,087

Increase in stocks

(237,229

)

(477,333

)

Increase in trade and other debtors

(68,063

)

(132,672

)

(Decrease)/increase in trade and other creditors

(96,592

)

1,999,623

Cash generated from operations

212,650

2,452,705

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31st December 2021

31/12/21

1/1/21

£

£

Cash and cash equivalents

2,880,037

2,827,761

Year ended 31st December 2020

31/12/20

1/1/20

£

£

Cash and cash equivalents

2,827,761

851,276

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/1/21

Cash flow

At 31/12/21

£

£

£

Net cash

Cash at bank and in hand

2,827,761

52,276

2,880,037

2,827,761

52,276

2,880,037

Debt

Finance leases

(357,175

)

66,449

(290,726

)

(357,175

)

66,449

(290,726

)

Total

2,470,586

118,725

2,589,311

1.	STATUTORY INFORMATION

Plastics Plus Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements are presented in sterling (£)

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates.It also requires management to exercise judgement in applying the company's accounting policies (see below)

Judgements in applying accounting policies and estimation uncertainty

The preparation of the financial statements in conformity with generally accepted accounting policies require the directors to make estimates and assumptions that effect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.Actual results in the future could differ from those estimates.In this respect, the directors believe that the critical accounting policies where judgements or estimates are necessarily applied are as follows:

Stock

The company hold a significant level of stock.Provision is needed for slow-moving and potential obsolete stock,this by its very nature,requires management to make judgements.These are based on historical experience and on other factor's that are believed to be relevant in the circumstances.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Plant and machinery

-

20% on cost

Fixtures and fittings

-

33% on cost and 15% on cost

Motor vehicles

-

25% on cost

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Financial instruments

Basic financial instruments are recognised at amortised cost, except for investments in nonconvertible preference and non-puttable ordinary shares which are measured at fair value, with changes recognised in profit or loss. Derivative financial instruments are initially recorded at cost and thereafter at fair value with changes recognised in profit or loss.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3.	EMPLOYEES AND DIRECTORS

2021

2020

£

£

Wages and salaries

1,893,710

2,233,824

Social security costs

226,565

274,734

Other pension costs

93,114

153,663

2,213,389

2,662,221

The average number of employees during the year was as follows:

2021

2020

Directors

4

4

Office and Management

10

10

Selling and distribution

24

26

38

40

2021

2020

£

£

Directors' remuneration

862,744

920,938

Information regarding the highest paid director is as follows:

2021

2020

£

£

Emoluments etc

553,463

552,094

4.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2021

2020

£

£

Hire of plant and machinery

16,582

16,582

Depreciation - owned assets

60,535

50,817

Depreciation - assets on hire purchase contracts

165,813

189,026

Profit on disposal of fixed assets

(15,677

)

(28,255

)

Auditors' remuneration

2,500

-

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2021

2020

£

£

Hire purchase

12,087

16,589

6.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2021

2020

£

£

Current tax:

UK corporation tax

83,019

103,434

Deferred tax

(9,544

)

57,571

Tax on profit

73,475

161,005

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2021

2020

£

£

Profit before tax

392,027

835,616

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2020 - 19%)

74,485

158,767

Effects of:

Expenses not deductible for tax purposes

4,911

2,232

Capital allowances in excess of depreciation

-

(57,565

)

Depreciation in excess of capital allowances

3,638

-

Adjustments to tax charge in respect of previous periods

(15

)

-

Deferred tax movement

(9,544

)

57,571

Total tax charge

73,475

161,005

7.

DIVIDENDS

2021

2020

£

£

Ordinary A shares of £1 each

Interim

2,000

2,000

Ordinary B shares of £1 each

Interim

4,000

4,000

6,000

6,000